THE State Government has allocated $112,000 from its $1-billion Regional Growth Fund to upgrade electricity supply at Hindmarsh Shire tourism sites.

Member for Lowan Hugh Delahunty and Hindmarsh Shire chief executive Tony Doyle announced the money at Dimboola Caravan Park on Friday.

"Hindmarsh Shire Council has identified tourism and economic development as major areas of focus in its 2013-17 plan," Mr Delahunty said.

"The improved electrical infrastructure on these tourism assets will help Hindmarsh Shire become an even better caravan, camping and tourism destination.

"This investment will drive jobs, more investment and innovation in rural and regional Victoria."

Total funding of $154,000 will include $42,000 from Hindmarsh Shire Council.

"The government is committed to the project," Mr Delahunty said.

Most of the money will be invested in Dimboola Caravan Park.

Park owner Russell Barber said he was pleased with the announcement.

"It will be great," Mr Barber said.

"The power boxes have not been upgraded in the past 20 years, and they're all rusty and not the best."

Power will also be upgraded at Four Mile Beach and Wimmera-Mallee Pioneer Museum at Jeparit.

Mr Doyle said there were a lot of 'grey nomads' travelling around who looked to see what facilities were available online.

"Dimboola Caravan Park used to be the top caravan park in the state and we hope to get it back there," he said.

Mr Barber said 20 couples usually stayed at the park for more than three months each Christmas.

"We need more power on site to prevent overloading and power outages," he said.

"With the power being upgraded people will be able to park anywhere they like on the site."

NORTHERN Grampians Shire Council will receive $45,000 from the Regional Growth Fund towards the development of Halls Gap's public land and retail precinct.

"This will support sustainability and expansion opportunities of businesses, as well as provide a pathway for new investment and revitalisation of Halls Gap as a tourist resort town," Mr Delahunty said.